Finance

Greece Votes NO – Let The Chaos Begin…
theeconomiccollapseblog.com
The result of the referendum in Greece is a great victory for freedom, but it is also threatens to unleash unprecedented economic chaos all across Europe.  With almost all of the votes counted, it is being reported that approximately 61 percent of Greeks have voted “no” and only about 39 percent of Greeks have voted “yes”.  This is a much larger margin of victory for the “no” side than almost everyone was anticipating, and it represents a stunning rejection [...]
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Guess What Happened The Last Time The Chinese Stock Market Crashed Like This?
theeconomiccollapseblog.com
The second largest stock market in the entire world is collapsing right in front of our eyes.  Since hitting a peak in June, the most important Chinese stock market index has plummeted by well over 20 percent, and more than 3 trillion dollars of “paper wealth” has been wiped out.  Of course the Shanghai Composite Index is still way above the level it was sitting at exactly one year ago, but what is so disturbing about this current crash is that it is so similar to what we witnessed [...]
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Why The Puerto Rico Debt Crisis Is Such A Huge Threat To The U.S. Financial System
theeconomiccollapseblog.com
The debt crisis in Puerto Rico could potentially cost financial institutions in the United States tens of billions of dollars in losses.  This week, Puerto Rico Governor Alejandro Garcia Padilla publicly announced that Puerto Rico’s  73 billion dollar debt is “not payable,” and a special adviser that was recently appointed to help straighten out the island’s finances said that it is “insolvent” and will totally run out of cash very shortly.  At this point, [...]
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The 75 Trillion Dollar Shadow Banking System Is In Danger Of Collapsing
theeconomiccollapseblog.com
Keep an eye on the shadow banking system – it is about to be shaken to the core.  According to the Financial Stability Board, the size of the global shadow banking system has reached an astounding 75 trillion dollars.  It has approximately tripled in size since 2002.  In the U.S. alone, the size of the shadow banking system is approximately 24 trillion dollars.  At this point, shadow banking assets in the United States are even greater than those of conventional banks.  These shadow b [...]
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16 Facts About The Tremendous Financial Devastation That We Are Seeing All Over The World
theeconomiccollapseblog.com
As we enter the second half of 2015, financial panic has gripped most of the globe.  Stock prices are crashing in China, in Europe and in the United States.  Greece is on the verge of a historic default, and now Puerto Rico and Ukraine are both threatening to default on their debts if they do not receive concessions from their creditors.  Not since the financial crisis of 2008 has so much financial chaos been unleashed all at once.  Could it be possible that the great financial crisis of 201 [...]
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And So It Begins – Greek Banks Get Shut Down For A Week And A ‘Grexit’ Is Now Probable
theeconomiccollapseblog.com
Is this the beginning of the end for the eurozone?  For years, European officials have been trying to “fix Greece”, but nothing has worked.  Now a worst case scenario is rapidly unfolding, and a “Grexit” has become more likely than not.  On Sunday, the European Central Bank announced that it was not going to provide any more emergency support for Greek banks.  But that was the only thing keeping them alive.  In order to prevent total chaos, Greek banks have been shut [...]
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The Economic Collapse Blog Has Issued A RED ALERT For The Last Six Months Of 2015
theeconomiccollapseblog.com
I have never done anything like this before.  Ever since I started The Economic Collapse Blog in late 2009, I have never issued any kind of “red alert” for any specific period of time.  As an attorney, I was trained to be level-headed and to only come to conclusions that were warranted by the evidence.  So this is not something that I am doing lightly.  Based on information that I have received, things that I have been told, and thousands of hours of research that have gone into [...]
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The Liquidity Crisis Intensifies: ‘Prepare For A Bear Market In Bonds’
theeconomiccollapseblog.com
Are we about to witness trillions of dollars of “paper wealth” vaporize into thin air?  During the next financial crisis, a lot of “wealthy” investors are going to be in for a very rude awakening.  The truth is that securities are only worth what someone else is willing to pay for them, and that is why liquidity is so important.  Back on April 17th, I published an article entitled “The Global Liquidity Squeeze Has Begun“, but it didn’t get nearly as m [...]
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Does The IMF Actually Want To Cause A Greek Debt Default?
theeconomiccollapseblog.com
When it comes to geopolitics, there are often wheels working within wheels that are working within wheels.  Once in a while we get a peek behind the scenes, but for the most part the machinations of the global elite remain shrouded in mystery most of the time.  And sometimes the global elite appear to be doing things that, on the surface, do not seem to make much sense at all.  What is going on in Europe is a perfect example of this.  If everyone was negotiating honestly, I believe that a Gr [...]
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Warren Buffett: Derivatives Are Still Weapons Of Mass Destruction And ‘Are Likely To Cause Big Trouble’
theeconomiccollapseblog.com
After all these years, the most famous investor in the world still believes that derivatives are financial weapons of mass destruction.  And you know what?  He is exactly right.  The next great global financial collapse that so many are warning about is nearly upon us, and when it arrives derivatives are going to play a starring role.  When many people hear the word “derivatives”, they tend to tune out because it is a word that sounds very complicated.  And without a doubt, deri [...]
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Lindsey Williams, Martin Armstrong And Alex Jones All Warn About What Is Coming In The Fall Of 2015
theeconomiccollapseblog.com
Not since the financial crash of 2008 have so many prominent people issued such urgent warnings about a specific time period.  Almost daily now, really big names are coming out with chilling predictions about what they believe is going to happen during the second half of 2015.  But it isn’t just that these people have a “bad feeling” about things.  The truth is that we are witnessing a confluence of circumstances and events in the second half of this year that is unprecedent [...]
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Signs Of Financial Turmoil In Europe, China And The United States
theeconomiccollapseblog.com
As we move toward the second half of 2015, signs of financial turmoil are appearing all over the globe.  In Greece, a full blown bank run is happening right now.  Approximately 2 billion euros were pulled out of Greek banks in just the past three days, Barclays says that capital controls are “imminent” unless a debt deal is struck, and there are reports that preparations are being made for a “bank holiday” in Greece.  Meanwhile, Chinese stocks are absolutely crashing. [...]
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The Economic Depression In Greece Deepens As Tsipras Prepares To Deliver ‘The Great No’
theeconomiccollapseblog.com
As Greece plunges even deeper into economic chaos, Greek Prime Minister Alexis Tsipras says that his government is prepared to respond to the demands of the EU and the IMF with “the great no” and that his party will accept responsibility for whatever consequences follow.  Despite years of intervention from the rest of Europe, Greece is a bigger economic mess today than ever.  Greek GDP has shrunk by 26 percent since 2008, the national debt to GDP ratio in Greece is up to a staggeri [...]
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The Next Great European Financial Crisis Has Begun
theeconomiccollapseblog.com
The Greek financial system is in the process of totally imploding, and the rest of Europe will soon follow.  Neither the Greeks nor the Germans are willing to give in, and that means that there is very little chance that a debt deal is going to happen by the end of June.  So that means that we will likely see a major Greek debt default and potentially even a Greek exit from the eurozone.  At this point, credit default swaps on Greek debt have risen 456 percent in price since the beginning of [...]
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We Might As Well Face It – America Is Addicted To Debt
theeconomiccollapseblog.com
Corporations, individuals and the federal government continue to rack up debt at a rate that is far faster than the overall rate of economic growth.  We are literally drowning in red ink from sea to shining sea, and yet we just can’t help ourselves.  Consumer credit has doubled since the year 2000.  Student loan debt has doubled over the course of the past decade.  Business debt has doubled since 2006.  And of course the debt of the federal government has doubled since 2007.  Anyone [...]
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‘You’re Fired – Now Train Your Much Cheaper Foreign Replacement’
theeconomiccollapseblog.com
If you were laid off from your job, would you be willing to train your replacement if your company threatened to take away your severance pay if you didn’t do it?  And how would you feel if your replacement came from India, and the only reason your company was replacing you was because the foreign worker was a lot less expensive?  Sadly, this is happening all over America – especially in the information technology field.  Huge corporations such as Disney and Southern California Ed [...]
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Hospitals Are Blatantly Ripping Us Off
theeconomiccollapseblog.com
Most Americans are deathly afraid to go to the hospital these days – and it is because of the immense pain that it will cause to their wallets.  If you want to get on a path that will lead you to bankruptcy, just start going to the hospital a lot.  In America today, hospitals and doctors are blatantly ripping us off and they aren’t making any apologies for it.  As you will read about below, some hospitals mark up treatments by 1,000 percent.  In other instances, basic medical sup [...]
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Guess How Many Nations In The World Do Not Have A Central Bank?
theeconomiccollapseblog.com
Central banking has truly taken over the entire planet.  At this point, the only major nation on the globe that does not have a central bank is North Korea.  Yes, there are some small island countries such as the Federated States of Micronesia that do not have a central bank, but even if you count them, more than 99.9% of the population of the world still lives in a country that has a central bank.  So how has this happened?  How have we gotten the entire planet to agree that central banking [...]
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Guess How Many Nations In The World Do Not Have A Central Bank?
theeconomiccollapseblog.com
Central banking has truly taken over the entire planet.  At this point, the only major nation on the globe that does not have a central bank is North Korea.  Yes, there are some small island countries such as the Federated States of Micronesia that do not have a central bank, but even if you count them, more than 99.9% of the population of the world still lives in a country that has a central bank.  So how has this happened?  How have we gotten the entire planet to agree that central banking [...]
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American Pharoah: What A Perfect Description For The Guy In The White House
theeconomiccollapseblog.com
A horse named “American Pharoah” just won the Triple Crown.  Is this some sort of a sign for America?  The office of the presidency was greatly strengthened under previous administrations, but now Barack Obama has grabbed an unprecedented amount of power for himself.  In this article, I am going to focus on immigration, but Obama’s power grab is certainly not limited to this area.  And as I have written about previously, if there is some sort of major “national emerge [...]
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Why Is The EU Forcing European Nations To Adopt ‘Bail-In’ Legislation By The End Of The Summer?
theeconomiccollapseblog.com
Are they expecting something to happen?  As you will read about below, the European Union says that any nation within the EU that does not enact “bail-in” legislation within the next two months will face legal action.  The countries that are being threatened in this manner include Italy and France.  If you fast forward two months from this moment, that puts us in early August.  So clearly the European Union wants everything to be squared away by the end of the summer.  Is there [...]
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The Central Banks Are Losing Control Of The Financial Markets
theeconomiccollapseblog.com
Every great con game eventually comes to an end.  For years, global central banks have been manipulating the financial marketplace with their monetary voodoo.  Somehow, they have convinced investors around the world to invest tens of trillions of dollars into bonds that provide a return that is way under the real rate of inflation.  For quite a long time I have been insisting that this is highly irrational.  Why would any rational investor want to put money into investments that will make th [...]
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Investors Start To Panic As A Global Bond Market Crash Begins
theeconomiccollapseblog.com
Is the financial collapse that so many are expecting in the second half of 2015 already starting?  Many have believed that we would see bonds crash before the stock market crashes, and that is precisely what is happening right now.  Since mid-April, the yield on 10 year German bonds has shot up from 0.05 percent to 0.89 percent.  But much of that jump has come this week.  Just a couple of days ago, the yield on 10 year German bonds was sitting at just 0.54 percent.  And it isn’t just [...]
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2 Things That Are Happening Right Now That Have Never Happened Outside Of A Recession
theeconomiccollapseblog.com
If we are not heading into a recession, why does our economy continue to act as if that is precisely what is happening?  As you will see below, we learned this week that factory orders have declined year over year for six months in a row.  That is something that has never happened outside of a time of recession.  We have also seen new orders for consumer goods fall dramatically.  In fact, the only time we have seen a more dramatic decline in that number was during the last recession.  And w [...]
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Is The Stock Market Overvalued?
theeconomiccollapseblog.com
Are stocks overvalued?  By just about any measure that you could possibly name, stocks are at historically high prices right now.  From a technical standpoint, the stock market is more overvalued today than it was just prior to the last financial crisis.  The only two moments in U.S. history that even compare to our current state of affairs are the run up to the stock market crash of 1929 and the peak of the hysteria just before the dotcom bubble burst.  It is so obvious that stocks are in a [...]
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A Recession Within A Recession
theeconomiccollapseblog.com
On Friday, the federal government announced that the U.S. economy contracted at a 0.7 percent annual rate during the first quarter of 2015.  This unexpected shrinking of the economy is being primarily blamed on “harsh” weather during the first three months of this year and on the strengthening of the U.S. dollar.  Most economists are confident that U.S. GDP will rebound back into positive territory when the numbers for the second quarter come out, but if that does not happen we wil [...]
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Baltimore Has Descended Into A State Of Lawlessness – And More Cities Will Soon Follow
theeconomiccollapseblog.com
Did you really think that Baltimore would return to normal after everything that has happened?  On Thursday, a mother and her 7-year-old son were both shot in the head in a double murder that has shocked the entire nation.  Police believe that the son may have been shot in order to prevent him from identifying the individual that shot his mother.  So is this what America is turning into?  A place where 7-year-old kids are executed in cold blood?  That mother and son were the 37th and 38th m [...]
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Emergency Powers Give Barack Obama Authority Over Just About Everything During A Major National Crisis
theeconomiccollapseblog.com
Presidents have always exercised emergency powers, but now thanks to dozens of new laws, regulations, court decisions and executive orders, Barack Obama is the most powerful president in all of U.S. history.  Of course the U.S. Constitution does not actually give the president any special powers during a time of national emergency, but over time presidents have decided that they should be able to exercise such powers and the courts have generally agreed with them.  During World War II and prio [...]
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